Wednesday, February 27, 2013
Dividend Increase: NVS
Novartis (NVS) is increasing its annual dividend by 2.2%, from CHF 2.25 to CHF 2.30 per share, putting the company on track for its 16th consecutive year of dividend growth in CHF (press release). I will not know the exact dividend amount in USD until I receive the payment. Thus far this year, there have been dividend increases for 11 of the 27 dividend growth stocks in my portfolio.
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DGM - are you okay with the NVS increase? I commented on my blog last week that I was not happy with the level of TRI's dividend increases the last few years, and have to say I feel the same way about NVS. NVS's last 3 increases have been 4.6%, 2.8% and now 2.2%, and for me that is just not enough (I am looking for at least 5%+ on average). Not only have the last 3 increases been below 5%, but "the trend is not your friend", going down each year. Just curious on your thoughts.
ReplyDeleteDoD: The small dividend increase was a bit disappointing though not unexpected, given the lack of year-over-year growth in the company's operating results. I plan to continue holding the stock, but if next year's increase is also small, then I might consider selling and redeploying my capital to a stronger dividend grower.
DeleteHow/Where do you get your infos on dividend increases? What is an easy way to monitor your portfolio with regards to div. increases/changes?
ReplyDeleteAnonymous: I mainly get information about dividend increases from company websites and Seeking Alpha. I usually monitor for an announcement around the same time that a company increased its dividend in the previous year.
DeleteWhile the NVS dividend increase was certainly on the low side, its one that I am happy to hang onto through the medium term. I feel their pipeline is fairly robust and they should start seeing the benefits of that through the next 3-5 years in increased earnings, and accelerated dividend growth. I wonder if we could get a marginal boost in the dividend from the CHF/USD rate? That seems to have been a trend in NVS dividends over the last 5 or so years.
ReplyDeleteIntegrator: Thanks for your comment. I agree with your assessment of their pipeline and the prospects for accelerated earnings and dividend growth in a few years. It is one of the reasons why I consider NVS to be a good long-term investment. As for the CHD/USD exchange rate, it is less favorable now than it was last year, which will have a negative effect on the forthcoming dividend payment.
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